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Is Trinity Place Holdings Inc (NYSEMKT:TPHS) Excessively Paying Its CEO?

Matthew Messinger became the CEO of Trinity Place Holdings Inc (NYSEMKT:TPHS) in 2013. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.

See our latest analysis for Trinity Place Holdings

How Does Matthew Messinger’s Compensation Compare With Similar Sized Companies?

Our data indicates that Trinity Place Holdings Inc is worth US$161m, and total annual CEO compensation is US$1.5m. That’s less than last year. We examined companies with market caps from US$100m to US$400m, and discovered that the median CEO compensation of that group was US$915k.

Thus we can conclude that Matthew Messinger receives more in total compensation than the median of a group of companies in the same market, and of similar size to Trinity Place Holdings Inc. However, this doesn’t necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.

The graphic below shows how CEO compensation at Trinity Place Holdings has changed from year to year.

AMEX:TPHS CEO Compensation November 23rd 18

Is Trinity Place Holdings Inc Growing?

On average over the last three years, Trinity Place Holdings Inc has grown earnings per share (EPS) by 60% each year. Its revenue is up 103% over last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see.

We don’t have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Trinity Place Holdings Inc Been A Good Investment?

With a three year total loss of 16%, Trinity Place Holdings Inc would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.

In Summary…

We compared the total CEO remuneration paid by Trinity Place Holdings Inc, and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.

Importantly, though, the company has impressed with its earnings per share growth, over three years. Having said that, shareholders may be disappointed with the weak returns over the last three years. One might thus conclude that it would be better if the company waited until growth is reflected in the share price, before increasing CEO compensation.

Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.